A method based on entropy-based criteria is present to choose the optimal decomposition of Wavelet Packets Analysis (WPA) for damage detection in composite materials. The structural damage indexes constructed based on energy spectrum variation of the structural vibration responses decomposed using WPA before and after the occurrence of structural damage usually generate a complete binary tree to calculate its elements. Date mining is carried out in this paper by adoption entropy as the criteria to choose the optimal decomposition tree. In the decomposition process, only the sub-signals which contain main information of the original signal are decomposed to generate next level sub-signals. New damage index is constructed based on the optimal decomposition. Then the dimension of the damage index is reduced while still keeping its sensitive to damage. Whether Artificial Neural Network (ANN) or genetic algorithm (GA) is used in the further process of telling structural damage status from damage index, this reduction will make remarkable time saving.